Advent International to acquire majority stake in ATI Physical Therapy

  • Investment to strengthen ATI’s leadership in existing regional markets and accelerate its expansion in new markets across the United States

BOSTON, MA and BOLINGBROOK, IL, March 29, 2016 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has agreed to acquire a majority ownership interest in ATI Physical Therapy (“ATI”), a leading outpatient physical therapy provider in the United States, from KRG Capital Partners. ATI’s current management team, led by Dylan Bates, will retain a significant minority stake in the company and continue to lead ATI. Financial terms were not disclosed. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to be completed in the second quarter of 2016.

“We are pleased to welcome Advent as our new investment partner,” said Dylan Bates, Chief Executive Officer of ATI. “The outpatient physical therapy market in the U.S. is large, growing and highly fragmented, and we believe that Advent’s resources and expertise with healthcare services companies will help us to continue to successfully execute and accelerate our expansion strategy.  With Advent’s support, we will continue to focus on our core competencies that drive growth, operational efficiency and the very best physical therapy offering for patients across the country.”

Founded in 1996, ATI is a nationally-recognized rehabilitation provider, specializing in research-based physical therapy, workers’ compensation rehab, employer worksite solutions and sports medicine. ATI operates more than 500 clinics conveniently located in high-traffic areas across 19 U.S. states and the company is a leader in each of its top nine markets, with No.1 or No.2 positions by store count. In 2015, ATI’s facilities served nearly 300,000 unique patients. The company provides high-quality clinical care and is working with healthcare professionals and insurance providers to develop market-leading outcomes reporting capabilities in order to improve patient experience and quality of life.

“ATI has become a leader in its chosen markets and we see a number of avenues for continued growth and expansion,” said John Maldonado, a Managing Director at Advent. “ATI is a high-quality operator with best-in-class clinics, a strong leadership team and active de novo and acquisition strategies that we believe will enable it to grow by opening new ATI clinics and by being a primary consolidator in a fragmented industry. We are pleased to have the opportunity to work with the ATI team to enhance the company’s leadership position in the highly attractive and dynamic outpatient physical therapy market.”

The $15 billion outpatient physical therapy market is large and growing, with more than18,000 freestanding clinics in the United States providing cost-effective treatment options to patients dealing with any number of musculoskeletal injuries and other conditions. Advent expects the market will continue to grow based on the aging population’s need for physical therapy and the increased utilization of physical therapy by a wide range of age groups resulting from the growing awareness of physical therapy’s clinical value and cost effectiveness.

As part of the transaction, Advent Operating Partner Dr. Chris Krubert will join ATI’s Board of Directors. Dr. Krubert brings extensive healthcare services expertise, having served for nearly a decade as Chief Executive Officer of ApolloMD, a healthcare professional services firm consisting of more than 2,500 healthcare professionals specializing in a variety of fields. Advent’s Operating Partners serve as independent advisors to Advent and its portfolio companies and are a long-established element of the firm’s highly-operational approach to investing.

Advent has been investing in the healthcare sector for 25 years and has completed over 35 investments in 14 countries worldwide. Recent healthcare investments in the U.S. and Europe include Genoa, a QoL Healthcare Company, the largest specialty pharmacy operator in the U.S. focusing primarily on serving the needs of the mental health community; Mediq, a Netherlands-based international distributor of pharmaceuticals, medical devices and related care services; and Cotiviti, a leading payment accuracy provider in the U.S.

Jefferies and UBS are serving as financial advisors and Hogan Lovells is serving as legal advisor to ATI on the transaction. Barclays is serving as financial advisor and Weil, Gotshal & Manges LLP and McDermott Will & Emery are serving as legal advisors to Advent.


ATI Physical Therapy is a privately held, nationally recognized healthcare company, specializing in outpatient rehabilitation and adjacent healthcare services. With a focus on delivering a remarkable experience to every patient, every day, ATI has more than 500 locations from coast to coast. ATI was named “Best Physical Therapy Practice in the Nation” by ADVANCE magazine, and was one of the first physical therapy companies in the country to achieve URAC Core Accreditation, a mark of distinction that recognizes its commitment to quality healthcare. Based in Bolingbrook, Illinois, ATI gives back to communities across the country through the ATI Foundation, a non-profit established by ATI, which has provided more than $3 million in resources and funding to children with physical impairments.

For more information on ATI Physical Therapy, and a complete list of clinic locations, services and the ATI Foundation, please visit


Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested $30 billion in more than 300 private equity transactions in 40 countries. As of December 31, 2015, it had $29 billion in assets under management, which does not include the $13 billion recently raised for Advent’s latest global fund. With offices on four continents, Advent has established a globally integrated team of over 170 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.

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